Magazine Issue: January 2013

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Cover Story

Columns

FULL OF SCRAP

• Emphasis on worker safety key for recycling industry

  Prevention is key. Scrapyard fatalities simply are not acceptable, and companies must make it clear to workers that there’s no place for shortcuts.

PARTING SHOTS

• A rather mediocre year for North American steel industry

  Shedding light?  The disposition of TK’s assets may clarify acquiring companies’ intentions and their long-term judgments on the US market.

From the Editor

AMM COMMENT

• The only certainty is Government must work

  I’m going to say something that will probably sound heretical to many in the metals sector: When it is functional, government provides certainty in an otherwise uncertain environment.

Features

THE MONTH IN METALS

• What’s the ETA on M&As? Not 2013, analysts believe

  The metals industry can expect another slow year for mergers and acquisitions, although some companies are keeping their eyes open for deals.

• Steel market expected flat for 2013

  Neither buyers nor sellers expect any significant changes in steel demand in 2013, with market players giving up hope that it will be anything more than stable for steel products despite expected strength in the agriculture, automotive and energy sectors.

• Drill down in the details for 2013 OCTG outlook

  Low natural gas prices, high OCTG imports and increased domestic capacity are all presenting challenges in the US market, but after an expected slow start in 2013, improvements in demand, prices and drilling activity could bring a turnaround.

• US stainless market to see little change in 2013

  Although some differ on the outlook for the domestic stainless steel market, with nickel prices and wavering demand expected to keep things interesting, industry insiders hope the market will still record a slight increase in growth.

• Steel trade’s new cry: wailt 'till 2014

  Although 2012 was a stronger year than 2011, business began to slow somewhat in the second half of the year, leading many steel traders to look ahead to 2014 rather than 2013 for a full and lasting turnaround in the steel import and export markets.

• Ferrous scrap flows a big concern for 2013

  Scrap flows into shredders and nonshredding yards have emerged as the prevailing concern among industry players—not so much on volume, but quite heavily on margins because flows are directly affected by economic activity.

• The year ahead in metal raw materials

  Producers of iron ore and metallurgical coal can expect a stable 2013 as prices rise, the economy recovers and operations in the US and abroad invest in new projects.

• Aluminum pins 2013 hopes on political fortunes

  The demand for products should remain strong if political issues in Washington can be resolved quickly and effectively, aluminum experts say, creating expectations for a steady year of growth—unless partisan disagreements derail the US economy.

• Secondary aluminum: No longer a simple supply-demand game

  Macroeconomic factors—particularly the ongoing debt crisis in Europe and its accompanying effect on London Metal Exchange pricing—seemed to weigh more heavily on free-market aluminum alloy and scrap prices as demand remained steady.

• Titanium industry undergoes massive changes into 2013

  PCC’s takeover of Timet—the largest such move in the titanium sector’s history—may be the biggest step yet in consolidating the aerospace supply chain, transforming what once was an industry of individual mills into a series of production facilities under larger companies.

• Why China is the key to the future of copper in 2013

  Chinese markets account for more than 40 percent of global copper consumption, and demand from Shanghai warehouses can move prices worldwide.  That means changes in China’s copper usage could create wild swings in the international marketplace.

• Analysts split over 2013 nickel forecast

  Analysts are divided on how nickel prices will perform in the coming year as a number of factors—including supply levels, incident-prone mine startups, and influences like governmental changes in China and Japan—have yet to come into focus.

CENTER PIECE

• Metal distributors' outlook brighter for ’13 but optimism tempered

  After a false start in 2012, a lot of service center customers ‘are still holding (business prospects) close to the vest,’ one executive said.

• Maruichi Leavitt: Welcome to the industrial renaissance

  Amid rising demand from the energy and automotive sectors, Maruichi Leavitt Pipe & Tube is nearing the end of a multi-million-dollar upgrade—and looking ahead to a bright future.

• Independence Tube rises from tornado's ashes

  Just one year after its Decatur, Ala., facility was virtually obliterated by a tornado, Independence Tube was fully operational with the help of local companies and state officials determined to keep the company in the state.

END-USER SPOTLIGHT

• New regulations accelerate automotive lightweighting

  Responses to changing auto manufacturing demand have led metal producers to project unprecedented growth for some sectors in 2013.